Romania won the case against Rosia Montana Gold Corporation, in which Gabriel Resources LTD (GBU.TO) demanded approximately USD 6.7 billion in compensation, according to the decision of the International Court of Arbitration of the International Center for the Settlement of Disputes Related to Investments.
Gabriel Resources invested EUR 900 million and demanded compensation of EUR 6.7 billion because the project failed. The international arbitration action was initiated in 2015 against Romania by two foreign investors, Gabriel Resources Ltd. and Gabriel Resources (Jersey). It was based on the Agreements regarding the promotion and mutual guarantee of investments concluded by Romania with the Government of Canada (ratified by Law no. 356/2009) and the Government of the United Kingdom of Great Britain and Northern Ireland (ratified by Law no. 109/1995).
The decision was initially announced on Friday evening by Prime Minister Ciolacu, after weeks in which signals were sent from the Government that Romania could lose the trial and be forced to pay huge penalties.
Romania was represented in this process by the Romanian law firm Leaua Damcali Deaconu Paunescu – LDDP and the Swiss firm LALIVE SA.
According to the document through which the decision was communicated, the decision was taken by the majority, and it also establishes a series of damages compensations that the Gabriel Resources company will have to pay to Romania, sums of money related to court costs. It is about EUR 1.1 million, RON 30.3 million and USD 0.928 million.
